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This document is a presentation submitted to the Ateneo Graduate School of Business on identifying market segments and targets. It discusses the different levels of market segmentation from mass markets to niche markets. It also covers the bases for segmenting customer markets, such as geographic, demographic, psychographic, and behavioral factors. The presentation emphasizes choosing target markets by evaluating segments based on measurability, substantiality, accessibility, and how actionable they are for a company.

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ATENEO GRADUATE SCHOOL OF BUSINESS CHAPTER 8: Identifying Market Segments and Targets Submitted by: Caballero, Volteire Elainrose Esberto Noel Paningbatan Daiki Shimizu May 4, 2012
CHAPTER 8: Identifying Market Segments and Targets Elaine’s work for group presentation
OBJECTIVES  Understand the different level of market segmentation  Have an overview on how can a company divide a market into segment  Have an understanding on how should a company choose the most attractive target markets  Have an awareness on the requirements for an effective segmentation
WHAT IS MARKETING? CREATE COMMUNICATE DELIVER VALUE SATISFY CUSTOMER’S NEEDS & WANTS BEAT THE COMPETITORS GAIN PROFIT
WHAT IS MASS MARKETING? One flavor of pizza originally created for everyone Mass produced to sell to all buyers Creates higher cost Results to lower profit
LEVELS OF MICROMARKETING Defining your market PIZZA = WHOLE MARKET
LEVELS OF MICROMARKETING The market is divided into segments Each flavor of pizza is a segment
LEVELS OF MICROMARKETING The market is divided into segments Each flavor of pizza is a segment
LEVELS OF MICROMARKETING NICHE is identified by dividing the segments into subgroups NICHE
LEVELS OF MICROMARKETING Ultimate level of segmentation leads to Individual or customized marketing
LEVELS OF MICROMARKETING Tailored to the needs and wants of local customer group Muslim Community Halal Pizza Local Marketing – Halal Pizza for our Muslim brothers / sisters
BASES FOR SEGMENTING CUSTOMER MARKETS  Geographic Location Age & Life Cycle Life Stage Gender  Demographic Income Generation Social Class Gender Personality  Psychographic Trait Life Style Values Life Style Occasions Benefits  Behavioral User Status Usage Rate Buyer-Readiness Divorce Loyalty Status Attitude
5 KEY CRITERIA FOR MARKET SEGMENTS Measurable Differentiable Substantial Actionable Accessible
CHOOSING THE MOST ATTRACTIVE MARKET Segment evaluation should be reviewed considering two factors Company’s Objective and Resources Overall Attractiveness of the Segment Weighing in both factors would help us create wiser decision for the company.
TISSUE DRAWING Defining the market opportunity Gap in meeting customer needs and wants can be relayed as the market opportunities
TISSUE DRAWING Determine the total market size Gap in meeting customer needs and wants can be relayed as the market opportunities Pizza signify the market
TISSUE DRAWING Divide the market into segments Gap in meeting customer needs and wants can be relayed as the market opportunities Each portion / division signifies the segment
TISSUE DRAWING Identify your Target Niche Gap in meeting customer needs Pizza signify the market and wants can be relayed as the market opportunities The certain portion is the Niche
TISSUE DRAWING Localized Market Find your Niche Gap in meeting customer needs Pizza signify the market and wants can be relayed as the Per Group Divide into segment market opportunities
TISSUE DRAWING Individual Marketing Find your Niche Local Marketing Gap in meeting customer needs Pizza signify the market and wants can be relayed as the Divide into segment Customized market opportunities
TISSUE DRAWING Find your Niche Local Marketing Customized Gap in meeting customer needs Pizza signify the market and wants can be relayed as the Divide into segment market opportunities Bases for Segmenting Geographic Psychological Demographic Behavioral
TISSUE DRAWING Find your Niche Local Marketing Customized Gap in meeting customer needs Pizza signify the market and wants can be relayed as the Divide into segment market opportunities Basis Criteria in Segmentation Substantial Differentiable Actionable Accessible Measurable
TISSUE DRAWING Find your Niche Local Marketing Customized Gap in meeting customer needs Pizza signify the market and wants can be relayed as the market opportunities Divide into segment Criteria Basis
TISSUE DRAWING Find your Niche Local Marketing Customized Gap in meeting customer needs Pizza signify the market and wants can be relayed as the market opportunities Divide into segment Criteria Basis WEIGH IN THE FACTORS TO ENSURE EFFECTIVE SEGMENTATION
TISSUE DRAWING Find your Niche Local Marketing Customized Gap in meeting customer needs Pizza signify the market and wants can be relayed as the market opportunities Divide into segment Criteria Basis
Presentation on Chapter 8: Identifying Market Segments and Targets Submitted by: Elainrose Esberto May 4, 2012 ATENEO GRADUATE SCHOOL OF BUSINESS
Presentation on Chapter 8: Identifying Market Segments and Targets Submitted by: Elainrose Esberto May 4, 2012
ATENEO GRADUATE SCHOOL OF BUSINESS CHAPTER 8: IDENTIFYING MARKET SEGMENTS AND TARGETS Submitted by: Volteire R. Caballero MBA-Standard May 03, 2011
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS SEGMENTING CONSUMER MARKETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS SEGMENTING CONSUMER MARKETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS SEGMENTING CONSUMER MARKETS
CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS SEGMENTING CONSUMER MARKETS
IDENTIFYING MARKET SEGMENTS AND TARGETS Chapter 8 Daiki “Derek” Shimizu May 4, 2012
OUTLINE: EMBRACE TARGET MARKETING 1. Market segmentation (Chapter 8) 2. Market targeting (Chapter 8) 3. Market positioning (Chapter 10)
Outline: Market Segments and Targets 1. Levels of Market Segmentation 2. Four levels of Micromarketing 3. Segmentation 4. Segmenting for Business Markets 5. Segmentation Process 6. Five key criteria in Market segments 7. Evaluating and Selecting the Market Segments
CONCEPT 1 SEGMENTATION INCLUDES MASS MARKETING Coke
MASS MARKETING CAN CREATE THE LARGEST POTENTIAL MARKET BUT… Proliferation
CONCEPT 2 FOUR LEVELS OF MICROMARKETING Segment > Niche > Local > Individual
Concept 3 Segmentation Segmenting Consumer Markets are Consumer characteristics 1. Geographic 2.Demographic 3.Psychographic
Concept 3 Segmentation Segmenting Consumer Markets are Consumer characteristics Consumer responses 1. Geographic 2.Demographic 3.Psychographic 4.Behavioral
GEOGRAPHIC SEGMENTATION CAN DIVIDE THE MARKET BASED ON • Nations • States • Regions • Counties • Cities • Neighborhoods
DEMOGRAPHIC SEGMENTATION DIVIDES THE MARKET BASED ON 1. Age and Life Cycle 2. Life Stage 3. Gender 4. Income 5. Generation 6. Social Class
PSYCHOGRAPHIC SEGMENTATION DIVIDES THE MARKET BASED ON
BEHAVIORAL SEGMENTATION DIVIDES THE MARKET BASED ON 1. Decision Roles • Initiator • Influencer • Decider • Buyer • User
BEHAVIORAL SEGMENTATION DIVIDES THE MARKET BASED ON 2. Behavioral Variables •Occasions •Benefits •User Status •Usage Rate •Buyer-Readiness •Loyalty Status •Attitude
Concept 4 SEGMENTING FOR BUSINESS MARKETS 1. Demographic 2. Operating Variable 3. Purchasing Approaches 4. Situational Factors 5. Personal Characteristics
Questions to decided which to serve in Demographic 1. Industry: Which industries? 2. Company size: what size companies? 3. Location: What geographical areas? Demographic
Questions to decided which to serve in Operating Variables 1. Technology: What customer technologies? 2. User or nonuser status: Which users? Heavy users? 3. Customer capabilities: Should we serve many of few services? Operating Variables
Questions to decided which to serve in Purchasing Approaches 1. Purchasing-function organization: centralized? 2. Power structure: engineering 3. dominated? Financially dominated? 4. Nature of existing relationship: strong? 5. General purchasing policies: lease? Service contract? Operating Variables 6. Purchasing criteria: quality? Service?
Questions to decided which to serve in Situational Factors 1. Urgency: quick and sudden? 2. Specific application: focus on certain application? Or all? 3. Size or order: large or small orders? Situational Factors
Questions to decided which to serve in Personal Characteristics 1. Buyer-seller similarity: people and values are similar? 2. Attitude toward risk: risk-taking or risk-avoiding customers? 3. Loyalty: high loyalty to their suppliers? Personal Characteristics
CONCEPT 5 SEGMENTATION PROCESS Needs-Based Market Segmentation Approach: 1. Needs-Based Segmentation 2. Segment Identification 3. Segment Attractiveness 4. Segment Profitability 5. Segment Positioning 6. Segment “Acid Test” 7. Marketing – Mix Strategy
Concept 6 Market segments must rate on five key criteria: 1. Measurable 2. Substantial 3. Accessible UV 4. Differentiable 5. Actionable
Concept 7: Evaluating and Selecting the Market Segments Single-segment Selective Product Concentration Specialization Specialization Market Specialization Full Market Coverage
Summary Consumer Consumer characteristics responses Individual Geographic Demographic Psychographi Local c Behavioral Segment Niche Demographic Operating Variable Purchasing Approaches Situational Factors Personal Characteristics
IDENTIFYING MARKET SEGMENTS AND TARGETS Chapter 8 Daiki “Derek” Shimizu May 4, 2012
ATENEO GRADUATE SCHOOL OF BUSINESS CHAPTER 8: Identifying Market Segments and Targets Submitted by: Noel F. Paningbatan May 4, 2012
FOUR LEVELS OF MARKETING Segments Niches Local Areas Individuals
SEGMENTING CONSUMER MARKETS  Geographic  Demographic  Psychographic  Behavioral
DEMOGRAPHIC SEGMENTATION  Age and Life Cycle  Life Stage  Gender  Income  Generation  Social Class
BEHAVIORAL SEGMENTATION  Decision Roles  Initiator  Influencer  Decider  Buyer  User
BEHAVIORAL SEGMENTATION Occasions Benefits User Status Usage Rate  Behavioral Variables Buyer-Readiness Loyalty Status Attitude  Occasions  Benefits  User Status  Usage Rate  Buyer-Readiness  Loyalty Status  Attitude
THE BRAND FUNNEL  Aware  Ever Tried  Recent Trial  Occasional User  Regular User  Most Often Used
LOYALTY STATUS Hardcore Split Loyals Shifting Loyals Switchers
SEGMENTING FOR BUSINESS MARKETS  Demographic  Operating Variable  Purchasing Approaches  Situational Factors  Personal Characteristics
STEPS IN SEGMENTATION PROCESS  Needs based segmentation  Segment identification  Segment Attractiveness  Segment Profitability  Segment Positioning  Segment Acid Test
EFFECTIVE SEGMENTATION CRITERIA Measurable Differentiable Substantial Actionable Accessible
TISSUE DRAWING 4 BUILDINGS Local Areas Niches Individuals Segments
TISSUE DRAWING With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral Local Areas Niches Individuals Segments
TISSUE DRAWING With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation 6. Social Class With 6 type of rooms per floor
TISSUE DRAWING With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation Behavioral Variables 6. Social Class With 6 type of rooms per floor Decision Roles 2 different buyers
TISSUE DRAWING Aware Ever Tried Recent Trial Occasional User Regular User Most Often Used Funnel rain catcher With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation Behavioral Variables 6. Social Class With 6 type of rooms per floor Decision Roles 2 different buyers
TISSUE DRAWING Aware Ever Tried Recent Trial Occasional User Regular User Most Often Used Funnel rain catcher With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation Behavioral Variables 6. Social Class With 6 type of rooms per floor Loyalty Decision Roles Hardcore Split Loyals Shifting Loyals Switchers 2 different buyers
TISSUE DRAWING Aware Ever Tried Recent Trial Occasional User Regular User Most Often Used Funnel rain catcher With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation Behavioral Variables 6. Social Class With 6 type of rooms per floor Loyalty Decision Roles Hardcore Split Loyals Demographic Shifting Loyals Operating Variable Switchers Purchasing Approaches Situational Factors Personal Characteristics 2 different buyers Corporate Customer
TISSUE DRAWING Aware Ever Tried Recent Trial Occasional User Regular User Most Often Used Punch list before accepting buildings Funnel rain catcher With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral Needs based segmentation Segment identification Segment Attractiveness Segment Profitability Segment Positioning Segment Acid Test 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation Behavioral Variables 6. Social Class With 6 type of rooms per floor Loyalty Decision Roles Hardcore Split Loyals Demographic Shifting Loyals Operating Variable Switchers Purchasing Approaches Situational Factors Personal Characteristics 2 different buyers Corporate Customer
TISSUE DRAWING Aware Ever Tried Recent Trial Occasional User Regular User Most Often Used Punch list before accepting buildings With 4 floors each Funnel rain catcher 1st: Geographic 2nd: Demographic 3rd: Psychographic 4 BUILDINGS 4th:Behavioral 1. Age and Life Cycle Needs based segmentation 2. Life Stage Segment identification 3. Gender Segment Attractiveness Segment Profitability 4. Income Segment Positioning 5. Generation Segment Acid Test 6. Social Class Local Areas Niches Individuals Segments With 6 type of rooms per floor Behavioral Variables Differentiable Measurable Loyalty Substantial Accessible Decision Roles Hardcore Actionable Split Loyals Demographic Shifting Loyals Operating Variable Switchers Purchasing Approaches Situational Factors Giving of keys upon Personal Characteristics purchase and turnover 2 different buyers Corporate Customer
SUMMARY  Marketing has four levels  Market Segmenting includes geographic, demographic, psychographic and behavioral considerations  Consider the decision roles and behavioral variables of the customer  Determine what sort of customer you have (Loyalty)  Effective Segmentation Criteria is differentiable, measurable, actionable, substantial and accessible
Presentation on Chapter 8: Identifying Market Segments and Targets Submitted by: Noel Paningbatan May 4, 2012 ATENEO GRADUATE SCHOOL OF BUSINESS

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Markma chapter 8 edited

  • 1. ATENEO GRADUATE SCHOOL OF BUSINESS CHAPTER 8: Identifying Market Segments and Targets Submitted by: Caballero, Volteire Elainrose Esberto Noel Paningbatan Daiki Shimizu May 4, 2012
  • 2. CHAPTER 8: Identifying Market Segments and Targets Elaine’s work for group presentation
  • 3. OBJECTIVES  Understand the different level of market segmentation  Have an overview on how can a company divide a market into segment  Have an understanding on how should a company choose the most attractive target markets  Have an awareness on the requirements for an effective segmentation
  • 4. WHAT IS MARKETING? CREATE COMMUNICATE DELIVER VALUE SATISFY CUSTOMER’S NEEDS & WANTS BEAT THE COMPETITORS GAIN PROFIT
  • 5. WHAT IS MASS MARKETING? One flavor of pizza originally created for everyone Mass produced to sell to all buyers Creates higher cost Results to lower profit
  • 6. LEVELS OF MICROMARKETING Defining your market PIZZA = WHOLE MARKET
  • 7. LEVELS OF MICROMARKETING The market is divided into segments Each flavor of pizza is a segment
  • 8. LEVELS OF MICROMARKETING The market is divided into segments Each flavor of pizza is a segment
  • 9. LEVELS OF MICROMARKETING NICHE is identified by dividing the segments into subgroups NICHE
  • 10. LEVELS OF MICROMARKETING Ultimate level of segmentation leads to Individual or customized marketing
  • 11. LEVELS OF MICROMARKETING Tailored to the needs and wants of local customer group Muslim Community Halal Pizza Local Marketing – Halal Pizza for our Muslim brothers / sisters
  • 12. BASES FOR SEGMENTING CUSTOMER MARKETS  Geographic Location Age & Life Cycle Life Stage Gender  Demographic Income Generation Social Class Gender Personality  Psychographic Trait Life Style Values Life Style Occasions Benefits  Behavioral User Status Usage Rate Buyer-Readiness Divorce Loyalty Status Attitude
  • 13. 5 KEY CRITERIA FOR MARKET SEGMENTS Measurable Differentiable Substantial Actionable Accessible
  • 14. CHOOSING THE MOST ATTRACTIVE MARKET Segment evaluation should be reviewed considering two factors Company’s Objective and Resources Overall Attractiveness of the Segment Weighing in both factors would help us create wiser decision for the company.
  • 15. TISSUE DRAWING Defining the market opportunity Gap in meeting customer needs and wants can be relayed as the market opportunities
  • 16. TISSUE DRAWING Determine the total market size Gap in meeting customer needs and wants can be relayed as the market opportunities Pizza signify the market
  • 17. TISSUE DRAWING Divide the market into segments Gap in meeting customer needs and wants can be relayed as the market opportunities Each portion / division signifies the segment
  • 18. TISSUE DRAWING Identify your Target Niche Gap in meeting customer needs Pizza signify the market and wants can be relayed as the market opportunities The certain portion is the Niche
  • 19. TISSUE DRAWING Localized Market Find your Niche Gap in meeting customer needs Pizza signify the market and wants can be relayed as the Per Group Divide into segment market opportunities
  • 20. TISSUE DRAWING Individual Marketing Find your Niche Local Marketing Gap in meeting customer needs Pizza signify the market and wants can be relayed as the Divide into segment Customized market opportunities
  • 21. TISSUE DRAWING Find your Niche Local Marketing Customized Gap in meeting customer needs Pizza signify the market and wants can be relayed as the Divide into segment market opportunities Bases for Segmenting Geographic Psychological Demographic Behavioral
  • 22. TISSUE DRAWING Find your Niche Local Marketing Customized Gap in meeting customer needs Pizza signify the market and wants can be relayed as the Divide into segment market opportunities Basis Criteria in Segmentation Substantial Differentiable Actionable Accessible Measurable
  • 23. TISSUE DRAWING Find your Niche Local Marketing Customized Gap in meeting customer needs Pizza signify the market and wants can be relayed as the market opportunities Divide into segment Criteria Basis
  • 24. TISSUE DRAWING Find your Niche Local Marketing Customized Gap in meeting customer needs Pizza signify the market and wants can be relayed as the market opportunities Divide into segment Criteria Basis WEIGH IN THE FACTORS TO ENSURE EFFECTIVE SEGMENTATION
  • 25. TISSUE DRAWING Find your Niche Local Marketing Customized Gap in meeting customer needs Pizza signify the market and wants can be relayed as the market opportunities Divide into segment Criteria Basis
  • 26. Presentation on Chapter 8: Identifying Market Segments and Targets Submitted by: Elainrose Esberto May 4, 2012 ATENEO GRADUATE SCHOOL OF BUSINESS
  • 27. Presentation on Chapter 8: Identifying Market Segments and Targets Submitted by: Elainrose Esberto May 4, 2012
  • 28. ATENEO GRADUATE SCHOOL OF BUSINESS CHAPTER 8: IDENTIFYING MARKET SEGMENTS AND TARGETS Submitted by: Volteire R. Caballero MBA-Standard May 03, 2011
  • 29. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 30. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 31. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 32. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 33. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 34. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 35. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 36. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 37. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 38. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 39. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 40. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 41. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 42. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 43. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 44. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 45. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS
  • 46. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS SEGMENTING CONSUMER MARKETS
  • 47. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS SEGMENTING CONSUMER MARKETS
  • 48. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS SEGMENTING CONSUMER MARKETS
  • 49. CHAPTER 8:IDENTIFYING MARKET SEGMENTS AND TARGETS SEGMENTING CONSUMER MARKETS
  • 50. IDENTIFYING MARKET SEGMENTS AND TARGETS Chapter 8 Daiki “Derek” Shimizu May 4, 2012
  • 51. OUTLINE: EMBRACE TARGET MARKETING 1. Market segmentation (Chapter 8) 2. Market targeting (Chapter 8) 3. Market positioning (Chapter 10)
  • 52. Outline: Market Segments and Targets 1. Levels of Market Segmentation 2. Four levels of Micromarketing 3. Segmentation 4. Segmenting for Business Markets 5. Segmentation Process 6. Five key criteria in Market segments 7. Evaluating and Selecting the Market Segments
  • 53. CONCEPT 1 SEGMENTATION INCLUDES MASS MARKETING Coke
  • 54. MASS MARKETING CAN CREATE THE LARGEST POTENTIAL MARKET BUT… Proliferation
  • 55. CONCEPT 2 FOUR LEVELS OF MICROMARKETING Segment > Niche > Local > Individual
  • 56. Concept 3 Segmentation Segmenting Consumer Markets are Consumer characteristics 1. Geographic 2.Demographic 3.Psychographic
  • 57. Concept 3 Segmentation Segmenting Consumer Markets are Consumer characteristics Consumer responses 1. Geographic 2.Demographic 3.Psychographic 4.Behavioral
  • 58. GEOGRAPHIC SEGMENTATION CAN DIVIDE THE MARKET BASED ON • Nations • States • Regions • Counties • Cities • Neighborhoods
  • 59. DEMOGRAPHIC SEGMENTATION DIVIDES THE MARKET BASED ON 1. Age and Life Cycle 2. Life Stage 3. Gender 4. Income 5. Generation 6. Social Class
  • 61. BEHAVIORAL SEGMENTATION DIVIDES THE MARKET BASED ON 1. Decision Roles • Initiator • Influencer • Decider • Buyer • User
  • 62. BEHAVIORAL SEGMENTATION DIVIDES THE MARKET BASED ON 2. Behavioral Variables •Occasions •Benefits •User Status •Usage Rate •Buyer-Readiness •Loyalty Status •Attitude
  • 63. Concept 4 SEGMENTING FOR BUSINESS MARKETS 1. Demographic 2. Operating Variable 3. Purchasing Approaches 4. Situational Factors 5. Personal Characteristics
  • 64. Questions to decided which to serve in Demographic 1. Industry: Which industries? 2. Company size: what size companies? 3. Location: What geographical areas? Demographic
  • 65. Questions to decided which to serve in Operating Variables 1. Technology: What customer technologies? 2. User or nonuser status: Which users? Heavy users? 3. Customer capabilities: Should we serve many of few services? Operating Variables
  • 66. Questions to decided which to serve in Purchasing Approaches 1. Purchasing-function organization: centralized? 2. Power structure: engineering 3. dominated? Financially dominated? 4. Nature of existing relationship: strong? 5. General purchasing policies: lease? Service contract? Operating Variables 6. Purchasing criteria: quality? Service?
  • 67. Questions to decided which to serve in Situational Factors 1. Urgency: quick and sudden? 2. Specific application: focus on certain application? Or all? 3. Size or order: large or small orders? Situational Factors
  • 68. Questions to decided which to serve in Personal Characteristics 1. Buyer-seller similarity: people and values are similar? 2. Attitude toward risk: risk-taking or risk-avoiding customers? 3. Loyalty: high loyalty to their suppliers? Personal Characteristics
  • 69. CONCEPT 5 SEGMENTATION PROCESS Needs-Based Market Segmentation Approach: 1. Needs-Based Segmentation 2. Segment Identification 3. Segment Attractiveness 4. Segment Profitability 5. Segment Positioning 6. Segment “Acid Test” 7. Marketing – Mix Strategy
  • 70. Concept 6 Market segments must rate on five key criteria: 1. Measurable 2. Substantial 3. Accessible UV 4. Differentiable 5. Actionable
  • 71. Concept 7: Evaluating and Selecting the Market Segments Single-segment Selective Product Concentration Specialization Specialization Market Specialization Full Market Coverage
  • 72. Summary Consumer Consumer characteristics responses Individual Geographic Demographic Psychographi Local c Behavioral Segment Niche Demographic Operating Variable Purchasing Approaches Situational Factors Personal Characteristics
  • 73. IDENTIFYING MARKET SEGMENTS AND TARGETS Chapter 8 Daiki “Derek” Shimizu May 4, 2012
  • 74. ATENEO GRADUATE SCHOOL OF BUSINESS CHAPTER 8: Identifying Market Segments and Targets Submitted by: Noel F. Paningbatan May 4, 2012
  • 75. FOUR LEVELS OF MARKETING Segments Niches Local Areas Individuals
  • 76. SEGMENTING CONSUMER MARKETS  Geographic  Demographic  Psychographic  Behavioral
  • 77. DEMOGRAPHIC SEGMENTATION  Age and Life Cycle  Life Stage  Gender  Income  Generation  Social Class
  • 78. BEHAVIORAL SEGMENTATION  Decision Roles  Initiator  Influencer  Decider  Buyer  User
  • 79. BEHAVIORAL SEGMENTATION Occasions Benefits User Status Usage Rate  Behavioral Variables Buyer-Readiness Loyalty Status Attitude  Occasions  Benefits  User Status  Usage Rate  Buyer-Readiness  Loyalty Status  Attitude
  • 80. THE BRAND FUNNEL  Aware  Ever Tried  Recent Trial  Occasional User  Regular User  Most Often Used
  • 81. LOYALTY STATUS Hardcore Split Loyals Shifting Loyals Switchers
  • 82. SEGMENTING FOR BUSINESS MARKETS  Demographic  Operating Variable  Purchasing Approaches  Situational Factors  Personal Characteristics
  • 83. STEPS IN SEGMENTATION PROCESS  Needs based segmentation  Segment identification  Segment Attractiveness  Segment Profitability  Segment Positioning  Segment Acid Test
  • 84. EFFECTIVE SEGMENTATION CRITERIA Measurable Differentiable Substantial Actionable Accessible
  • 85. TISSUE DRAWING 4 BUILDINGS Local Areas Niches Individuals Segments
  • 86. TISSUE DRAWING With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral Local Areas Niches Individuals Segments
  • 87. TISSUE DRAWING With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation 6. Social Class With 6 type of rooms per floor
  • 88. TISSUE DRAWING With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation Behavioral Variables 6. Social Class With 6 type of rooms per floor Decision Roles 2 different buyers
  • 89. TISSUE DRAWING Aware Ever Tried Recent Trial Occasional User Regular User Most Often Used Funnel rain catcher With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation Behavioral Variables 6. Social Class With 6 type of rooms per floor Decision Roles 2 different buyers
  • 90. TISSUE DRAWING Aware Ever Tried Recent Trial Occasional User Regular User Most Often Used Funnel rain catcher With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation Behavioral Variables 6. Social Class With 6 type of rooms per floor Loyalty Decision Roles Hardcore Split Loyals Shifting Loyals Switchers 2 different buyers
  • 91. TISSUE DRAWING Aware Ever Tried Recent Trial Occasional User Regular User Most Often Used Funnel rain catcher With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation Behavioral Variables 6. Social Class With 6 type of rooms per floor Loyalty Decision Roles Hardcore Split Loyals Demographic Shifting Loyals Operating Variable Switchers Purchasing Approaches Situational Factors Personal Characteristics 2 different buyers Corporate Customer
  • 92. TISSUE DRAWING Aware Ever Tried Recent Trial Occasional User Regular User Most Often Used Punch list before accepting buildings Funnel rain catcher With 4 floors each 4 BUILDINGS 1st: Geographic 2nd: Demographic 3rd: Psychographic 4th:Behavioral Needs based segmentation Segment identification Segment Attractiveness Segment Profitability Segment Positioning Segment Acid Test 1. Age and Life Cycle 2. Life Stage 3. Gender Local Areas Niches Individuals Segments 4. Income 5. Generation Behavioral Variables 6. Social Class With 6 type of rooms per floor Loyalty Decision Roles Hardcore Split Loyals Demographic Shifting Loyals Operating Variable Switchers Purchasing Approaches Situational Factors Personal Characteristics 2 different buyers Corporate Customer
  • 93. TISSUE DRAWING Aware Ever Tried Recent Trial Occasional User Regular User Most Often Used Punch list before accepting buildings With 4 floors each Funnel rain catcher 1st: Geographic 2nd: Demographic 3rd: Psychographic 4 BUILDINGS 4th:Behavioral 1. Age and Life Cycle Needs based segmentation 2. Life Stage Segment identification 3. Gender Segment Attractiveness Segment Profitability 4. Income Segment Positioning 5. Generation Segment Acid Test 6. Social Class Local Areas Niches Individuals Segments With 6 type of rooms per floor Behavioral Variables Differentiable Measurable Loyalty Substantial Accessible Decision Roles Hardcore Actionable Split Loyals Demographic Shifting Loyals Operating Variable Switchers Purchasing Approaches Situational Factors Giving of keys upon Personal Characteristics purchase and turnover 2 different buyers Corporate Customer
  • 94. SUMMARY  Marketing has four levels  Market Segmenting includes geographic, demographic, psychographic and behavioral considerations  Consider the decision roles and behavioral variables of the customer  Determine what sort of customer you have (Loyalty)  Effective Segmentation Criteria is differentiable, measurable, actionable, substantial and accessible
  • 95. Presentation on Chapter 8: Identifying Market Segments and Targets Submitted by: Noel Paningbatan May 4, 2012 ATENEO GRADUATE SCHOOL OF BUSINESS